(RTTNews) - Commerzbank AG (CRZBY.PK) reported that its second quarter net profit attributable to shareholders declined to 220 million euros from the prior year's 279 million euros. It reflected a low tax ratio because the valuation gain of Commerz Ventures did not trigger a tax expense.
Pre-tax profit was 211 million euros, down from 329 million euros in the previous year.
Operating profit declined to 205 million euros from 309 million euros in the previous year.
But, group revenues increased by 6.8% to 2.27 billion euros from 2.13 billion euros in the second quarter. It benefited from robust growth of 7% in net commission income, reflecting strong securities business. The first reversals of negative valuation effects from the first quarter made a positive contribution to the increase in revenues.
The venture capital fund of Commerzbank, Commerz Ventures, made a positive contribution of around 50 million euros. Excluding exceptional items, revenues grew by 184 million euros to 2.28 billion euros from last year.
The Bank expects largely stable customer revenues for the Private and Small-Business Customers segment over the course of this year. The bank assumes that there will be no second lockdown, economic activities gradually recover, and the government support programmes prove to be effective.
For Corporate Clients, the Bank expects a stronger impact from the coronavirus. The Bank continues its cost management and is now targeting a cost base including IT investments slightly below the level of 2019.
The risk result for the year 2020 is expected between 1.3 billion euros and 1.5 billion euros.
The Bank anticipates a negative net result for the year 2020, due to the expected risk result and potential restructuring charges.
Recently, Commerzbank's supervisory board elected Hans-Jörg Vetter as the future Chairman of the Supervisory Board.
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